Human resources are crucial for every company and organisation. Without them, a company can't think of accomplishing the bigger objectives. But with advent of globalization along with the high competition, companies are cutting thier costs by firing thier employees- their best assest. Last I heard VIVO pvt ltd was cost cutting by having fired a considerable amount of it's human capital, although it keeps increasing it's advertisement cost. I have no idea what is the general think behind this decision but I am sure, it would not be too great.
Companies or employers in general should focus more on retaining the good employees irrespective of a slight increase in thier salary package. In the end, they are indeed going to benefit the company only. Managing the people is the greatest task. Not many companies can do that effectively.